The income statement describes the financial position of a firm on a given date.

Question

Quizplus · Accepted Answer

The income statement is a financial statement that describes a firm's financial performance over a specific period of time, usually a quarter or a year. It reports on revenue, expenses, and net income (or loss) during that period, and does not describe the financial position of the firm on a specific date. To determine a firm's financial position on a specific date, one would need to look at the balance sheet.

The Income Statement Describes the Financial Position of a Firm